Centre will fulfill commitment on package announced by PM: Govt

New Delhi: Government on Tuesday said in Rajya Sabha that it will fulfill its commitment to provide the special package of Rs 1.25 lakh crore to Bihar which was announced by Prime Minister Narendra Modi in the run-up to Assembly polls there last year.

Prime Minister Narendra Modi. Reuters

"When the Prime Minister says this and tells people about it, this commitment will be fulfilled in toto. This amount of Rs 1.25 lakh crore will be given under Centrally Sponsored
Schemes.

"We have made a promise and we will fulfill it and people of Bihar will get full benefit of this," Minister of State for Finance Jayant Sinha said replying to questions.

Addressing a function in Bihar in August last year, the Prime Minister had announced a mega package of Rs 1.25 lakh crore in central funds for Bihar. Opposition parties have repeatedly raised questions over the genuineness of this special package announced by Modi.

In their supplementaries, the JD-U members repeatedly asked the minister whether and when the government will give the promised package to Bihar.

Replying to a question whether the government proposes to release the amount deducted from the Plan funds earmarked for Bihar, Sinha said release of central funds to the states under various programmes including Plan schemes are governed by prescribed guidelines including submission of utilisation certificates for funds released.

"This is not an issue of doing any favour. This is about responsibility. If utilisation certificate comes from your side, it becomes the responsibility of the government to give the fund," he said when asked when will the central government release funds for various pending road and bridge construction projects in the state.

The minister also chose to highlight that consequent to the recommendations of 14th Finance Commission, the share of states in the net proceeds of union taxes has been significantly enhanced from 32 to 42 per cent and that the total tax devolution to Bihar for the period of 2015-20 is estimated at Rs 381592.27 crore against the estimated tax devolution of Rs 158341.22 crore by 13th Finance Commission.

"This shows an increase of 141 per cent increase in tax devolution," he said.